AGRICULTURAL BANK OF CHINA(SH:601288) Xin Hua She·2025-10-19 09:05Core Insights - The article highlights the innovative financing solution provided by Agricultural Bank of China, which allows a company to secure loans based on electricity payment data, demonstrating a new approach to credit assessment in the agricultural sector [1][3]. Company Overview - Wuwei Yuanshuo Water-Saving Development Co., Ltd. was established in 2024 and specializes in the production of water-saving agricultural facilities such as drip irrigation belts [3]. - The company has experienced a surge in orders and plans to expand its production line, indicating strong market demand for its products [3][6]. Financing Solution - The Agricultural Bank of China’s Wuwei Liangzhou Branch identified the company's strong credit demand and provided a loan of 2 million yuan based on its electricity payment data, which reflects actual production levels [1][3]. - This "Electricity Payment E-Loan" is a new product developed by the bank, aimed at addressing the financing challenges faced by small and micro enterprises in the region [6][8]. Market Context - The demand for drip irrigation systems has increased significantly due to the promotion of high-standard farmland construction in Gansu Province, leading to a shortage of supply from traditional small workshop-style producers [6][8]. - The company’s production efficiency is notably higher than traditional methods, producing drip irrigation belts that are more effective and cost-efficient, thus benefiting farmers [6][8]. Risk Management - The bank's approach to using electricity consumption data as a credit assessment tool helps mitigate risks associated with lending to enterprises lacking traditional collateral [6][8]. - The successful implementation of this financing model is seen as a practical example of structural reform in financial supply, addressing the challenges of financing for agricultural enterprises [8].